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As an analyst, you are 95% confident that a year from now, the yield curve will be somewhere between 0.75% above its current position to 0.75% below its current position. A T-Bond has a coupon payment of $42, twenty years of remaining maturity, and a current price of $936.07. Which of the following is the correct 95% confidence interval for the price of this bond a year from now. $910.87 to $1,038.79 b. $850.00 to $1,034.12 $854.32 to $1,032.97 d. $912.05 to $1,042.87 a. C. As an analyst, you are 95% confident that a year from now, the yield curve will be somewhere between 0.75% above its current position to 0.75% below its current position. A T-Bond has a coupon payment of $42, twenty years of remaining maturity, and a current price of $936.07. Which of the following is the correct 95% confidence interval for the price of this bond a year from now. $910.87 to $1,038.79 b. $850.00 to $1,034.12 $854.32 to $1,032.97 d. $912.05 to $1,042.87 a. C.
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Related Book For
Investment Analysis and Portfolio Management
ISBN: 978-0538482387
10th Edition
Authors: Frank K. Reilly, Keith C. Brown
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